The Phoenix real estate market is always in flux, but currently in a way that effectively changes nothing. How is that possible? The answer lies in the seesaw balance of supply and demand\u2013 only in this case each side is changing in a way that offsets the other. Supply \u2013 it\u2019s up. Demand \u2013 it\u2019s up. The result is a static balance. Leaving us with a market that continues to slightly favor buyers in most areas (strongly in the outlying areas) just as it has since November of 2024.<\/p>\n\n\n\n
The brightest spot in the market (as has been true for the last few years) is the luxury market. It is performing better than ever courtesy of the stock market. Conversely, the darkest spot is condos under 300K. To quote the Cromford Report: \u201cSellers have the least advantage in the condominium market under $300K as supply is up 20% over last year and contracts in escrow up only 13%. April sold prices are down 9.5% from last year in this segment with the median size sold at 1,048 sq. ft., historically prices for this segment are similar to where they were 5 years ago around May 2021.\u201d By contrast, \u201cSingle family homes between 1,200-2,400 sq. ft. have shown the most stability in prices over the past 3 years with minimal fluctuation.\u201d The upshot is sellers tend to have the advantage in central locations and luxury, while buyers control the outer areas and prices below $500,000.<\/p>\n\n\n\n
Where this market heads next depends largely on the economic concerns of inflation, war, and jobs.<\/p>\n\n\n\n
Now on to some common topics that prompt questions from our clients.<\/p>\n\n\n\n
Solar<\/strong>: Our feelings on solar can probably be summed up with \u201clove the idea, hate the reality\u201d. Particularly solar leases. Again, we stress that the concept is solid in an area that is in \u201cthe sunbelt\u201d. However, few consumers are aware that the Big Beautiful Bill removed the existing tax incentives for the consumer on solar. Even beyond that, leased solar creates a financial obligation for any future buyer to assume. Many buyers are pushing the ceiling of their monthly qualifications. Another fixed payment that they must take on can be met with lender restrictions as well as buyer\u2019s mental hurdle \u2013 they may feel why do I have to take on your debt? It can dissuade some buyers from picking a solar lease home. Additionally, when roofs need repair or replacement the panels must be removed and reinstalled by the solar company at considerable expense. Owned solar is generally viewed differently by buyers- some consider it a plus although they may not consider it a value added item (i.e. they may not pay more for it, but they may consider it a plus when choosing a home). In short, we strongly urge our clients to really research solar and its implications over the sales pitches before committing.<\/p>\n\n\n\n Prepping your home for sale<\/strong>: We\u2019ve been selling real estate for over 40 years and this question\u2019s answer never changes. Small changes can provide good payback \u2013 with the ultimate goal of creating a good first impression. Landscape maintenance is one of the first things a buyer sees when approaching a home. A well-groomed yard along with a welcoming front door matters. As for the interior, purging and removing clutter costs nothing but pays off in making the space look larger, aesthetically pleasing and well maintained. Interior paint and updated flooring also payoff with buyers. Sound expensive and overwhelming? Can you sell just it as-is? Of course, but as we like to say buyers are bad estimators. There is penalty pricing for pushing work on to them. But getting the home on the market always outperforms our next topic\u2026.<\/p>\n\n\n\n Cash offer\/investor<\/strong>– Home sellers find the idea of a cash offer enticing. After all, the cash offer promises a few coveted things: skipping the work to prepare your home for sale; no appraisal or buyer qualifying for a loan; and no showings! Sounds great on paper. What is missing is\u2026 money. The average home seller will give up around 25-30% of their home\u2019s hard earned equity when selling this way. While we do out of necessity offer our clients a cash offer option thru the largest cash offer firm, we encourage them to consider enduring the traditional sales process to maximize value. Because in addition to losing money you give up representation. That may feel not meaningful but representation is a combination of hand holding blended with advocating. Meaning that you have someone defending your pocketbook but also who can level the playing field of knowledge. Going it alone puts you at a disadvantage as the investor is not on your side. In fact, legislation was passed to force investors to disclose if they are \u201cwholesalers\u201d because the public was so often exploited. What is a wholesaler? It is an investor who agrees to buy your home and then while under contract sells the home to another investor for more. We have seen deals 5 investor deep \u2013 with each person making money on the home seller\u2019s desperation or ignorance. Example: home seller sells to investor A for 400K, investor B agrees to take investor A position for 460K, investor C agrees to take investor B position for 500K\u2026 and so on. All money that the homeowner would have captured simply by agreeing to sell thru a traditional sale process. Seniors are often the target for these investors. The message? Check out all your options before heading down this precarious pathway.<\/p>\n\n\n\n Didn\u2019t see your question addressed here? Contact us \u2013 we will happily answer your questions or tour your home at no cost or obligation. As always, we are here to help.<\/p>\n\n\n\n Russell & Wendy<\/p>\n\n\n\n (mostly Wendy) <\/p>\n","protected":false},"excerpt":{"rendered":" The Phoenix real estate market is always in flux, but currently in a way that effectively changes nothing. How is that possible? The answer lies in the seesaw balance of supply and demand\u2013 only in this case each side is changing in a way that offsets the other. Supply \u2013 it\u2019s up. Demand \u2013 it\u2019s […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1506","post","type-post","status-publish","format-standard","hentry","category-real-estate-market"],"_links":{"self":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1506","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1506"}],"version-history":[{"count":1,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1506\/revisions"}],"predecessor-version":[{"id":1507,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1506\/revisions\/1507"}],"wp:attachment":[{"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1506"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1506"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nohasslelistingblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}